Tuesday, April 7, 2020

WHAT’S A COVID-19-INDUCED RECESSION?


COVID induced recession
COVID induced recession


WHAT’S A COVID-19-INDUCED RECESSION?

While we discuss recessions more closely and finding out why they arise, and how they impact the global economy. We need to discuss the various types of recessions in detail.

Real Recession

The real recession is a financial situation that relates to the Economic recession of 2009. It affected most countries in Europe, Canada, the USA, Mexico and some parts of Asia. Falls into the category which is the CapEx boom cycle. It derails the economic expansion causing disruptions, shutdowns, and variances in pricing. Hence, also affecting the stock markets and financial institutions that include banks and building societies. Arises due to conditions such as wars, disasters or other disruptions that can push the economy into contraction.
COVID-19 can’t cause a real recession according to most economists as the tendency is more to infect the host country and some other countries. However, there shall be some losses that relate to trade, finance, travel, and education. The losses from coronavirus might increase as well depending on the recovery time.

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